FISCAL NOTE

Date Requested: March 09, 2021
Time Requested: 12:25 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3142 Introduced HB3013
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to provide for a $5,000 tax credit for nurses to West Virginia personal income tax liabilities. Although the title of the bill refers to a credit for nurses, provisions of the bill give a tax credit to firefighters. If the bill were amended to give a credit of up to $5,000 to nurses, the loss to General Revenue Fund collections would be $107.0 million in FY2023 and in subsequent fiscal years. Provisions of this bill would become effective on January 1, 2022. Additional administrative costs incurred by the State Tax Department are expected to be $10,000 in FY2023.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -107,000,000


Explanation of above estimates (including long-range effect):


Although the title of the bill refers to a credit for nurses, provisions of the bill give a tax credit to firefighters. If the bill were amended to give a credit of up to $5,000 to nurses, the loss to General Revenue Fund collections would be $107.0 million in FY2023 and in subsequent fiscal years. Provisions of this bill would become effective on January 1, 2022. Additional administrative costs incurred by the State Tax Department are expected to be $10,000 in FY2023.



Memorandum


The stated purpose of this bill is to provide for a $5,000 tax credit for nurses to West Virginia personal income tax liabilities. The bill aims to “encourage participation in nursing by providing tax credits for those who provide vital service to their community in the field of nursing.” “Nurse” is defined as “a professional who is educated, trained, and licensed under §30-7-1 et seq. and §30-7A-1 et seq.” Article 7 is for RNs, while Article 7A is for LPNs. Use of the word “and” between the two article citations makes it unclear whether the nurse must be BOTH a RN and an LPN in order to be a “nurse” under this bill. Proposed §11-13KK-3(a) purports to set the amount of the credit but states that the credit is for “eligible volunteer firefighters” and does not mention nurses. To qualify for the credit, a nurse must submit to “the commission” (an undefined term) documentation from his or her employer demonstrating full-time employment as a nurse. If employment has been part-time or for only part of a year, the credit shall be “proportionally allocated.” The bill has an internal effective date of “after December 31, 2021,” but the effective date section again refers to volunteer firefighters rather than nurses.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov